Exxon Mobil Sounds The Alarm: Reportedly Warns On Sharp Drop In Australia's Gas Supply

Exxon Mobil Corporation XOM reportedly warned about Australia’s domestic gas supply outlook in a speech at the Australian Domestic Gas Outlook (ADGO) conference in Sydney.

The oil giant’s Australia’s Commercial Director David Berman said there is an urgent need for new investment in domestic gas supply and infrastructure to offer energy security and affordability for households and businesses, reported Reuters.

Berman commented, “Without investment, ExxonMobil Australia estimates by 2030 domestic gas supply available to southern states will decrease by 44%.”

“Chasing sizably lower domestic gas prices requires significantly shorter regulatory timelines because one third of the gas that will be required by consumers on the east coast between 2025 and 2030 is not in production,” he added.

Berman added that it takes just months to apply for and receive an onshore and offshore drilling permit in the U.S., but it can take up to two years in Australia, as per the report.

Notably, Exxon operates the Gippsland Basin joint venture, the biggest single gas supplier in Australia’s southern region, which includes New South Wales, Victoria, Tasmania, the Australian Capital Territory, and South Australia.

As per the report, the Gippsland Basin has the resources to be able to help reduce the gap, but final investment decisions to develop that gas have yet to be made.

Also Read: Exxon Mobil’s LNG Expansion On Track To Double By 2030: Report

Investors can gain exposure to the stock via SPDR Select Sector Fund – Energy Select Sector XLE and IShares U.S. Energy ETF IYE.

Price Action: XOM shares are down 0.69% at $113.86 on the last check Tuesday.

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